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 EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS! 

CALIBRATION…ARE YOU GIVING GAS AWAY?  THE ANSWER IS PROBABLY YES! 
TANK MONITORING PROBLEMS?   DELIVERY SHORTAGES?  GILBARCO/EXXON PASSPORT ERRORS!  C-STORE DELIVERIES!

Ok, the headline for today’s Road Warrior is wordy but has lots to consider.  I really don’t know where to begin because there is so much this involves.  I am becoming increasingly more concerned about members unconsciously dispensing more gas to their customers than they should.  Government officials are concerned with exactly the opposite.  They want to make sure that you are not cheating customers by dispensing less than the pump meter displays.

The reality is that because virtually every gallon of gasoline sold since 2004 contains at least 10% ethanol, the mechanical metering devices inside your dispensers are extremely prone to corrosion and therefore over dispensing product to your customers.  The problem is getting worse and if you are not checking and calibrating your pumps regularly then you may be losing lots of money.

We are also finding that because of ethanol, the readings from your Veeder Root electronic tank gauges are likely to be incorrect.  Unless you are keeping a tight control of your inventory, you are not even aware this is happening at your location.

The problem is very serious and is masked by many factors making you feel a false sense of security regarding your gasoline and diesel inventories.  YES…diesel is included in this problem because at the same time ethanol began wreaking havoc with your gasoline meters, ultra low sulfur diesel began ravaging your diesel meters too.   The problem is so serious that it even goes un-noticed when DEP audits your facility and checks your Veeder Root monitoring systems.  But bottom line is that depending on the volume at your location, you may be losing 200-900 gallons a month.  You can do the math and figure out exactly how much money you could be losing!

If you are reading this and thinking…”Sal you are nuts!  My inventory matches up with my sales and deliveries and I know I don’t have a problem.    Weights and Measures have checked my pumps and I am within the legal tolerance, and besides why doesn’t a shortage show up in my inventory”?  Please re-read what I just wrote about inaccurate Veeder Root readings.

Ethanol and Ultra-Low Sulfur Diesel both are causing significant errors because of corrosion on the gauges inside of your tank.  I have seen pictures that are stunning.

This is a problem and I expect to have more info shortly.

Because of both inaccuracies with meters and tank gauges, delivery problems due to product temperature differences are also going unnoticed.  If what I suspect is true, then your suppliers may be shortchanging you to the tune of thousands of dollars.  I have several members who have brought some of these inventory discrepancies to my attention and I am in the process of investigating and I will report to you soon.

Ok, as if that is not enough…. Evidence has been given to me this week that an intermittent problem exists at EXXON locations that utilize the Gilbarco/Passport credit card processing systems.  The problem may also exist at other brands that also utilize the Gilbarco/Passport systems too.  Unless you keep a tight control of your gasoline and diesel inventory, you may have credit card sales that are not being recorded resulting in monies not being paid to you for credit sales.

A conscientious member who does keep a tight control over his inventory accidentally stumbled on what is probably the cause of missing inventory that never showed up as a cash shortage at the end of each shift.  It was discovered when a customer credit receipt failed to print out of the pump when the sale was completed.  Further investigation found that nowhere was the sale recorded in the system.  The customer never would have been billed for the purchase, and the dealer never would have been paid for the sale.  The gasoline was taken from inventory and the shift was not short.  The dealer, who keeps a meticulous reconciliation of gasoline inventory, had been puzzled by about 900 gallons a month of missing gasoline.  The problem has been brought to Exxon’s attention and it seems as if they may have been aware of it and have a software patch to fix the problem.

Without a tight inventory control and happenstance stumble when a customer receipt didn’t print, this dealer would not have been able to conclude that he has been losing lots of money.

Here is something else that I want you to think about: Does the driver that delivers your soda cases ever ask you if you would like to purchase soda or energy drinks at half price because there is extra inventory on the truck?  I urge you to carefully check in all deliveries.  Don’t just count the cases.  You must check to see if you are receiving exactly what you ordered.  The driver may be substituting lower priced cases like water for higher priced cases such as energy drinks.  He can then offer the extra inventory to other dealers at half price and pocket the cash.  If you have ever been offered a deal like this then chances are the driver scammed a previous delivery.  If the driver scams you, then your product is being offered to another customer.

All of these things simply mean that if you are not paying attention to every ounce of product whether it is gasoline or soda, you may be losing lots of money and not even know it.

Thanks for listening - See you next week!

Regards,
Sal Risalvato
Executive Director

NEWS AROUND THE STATE

8/11/2011:
Right to Repair gives consumers a choice of mechanics 
A recent column by MSNBC.com’s Herb Weisbaum outlines why passing the Right to Repair Act is both consumer friendly and creates healthy competition among automotive repair shops.  Included in his analysis were the results of a recent survey by Consumer Reports, stating that readers gave independent repair shops higher marks than dealers for service, satisfaction and price. Click above to read the full article and (re)acquaint yourself with the merits of making Right to Repair the law of the land.

8/10/2011:
Car Tech: GM’s autonomous pod cars coming to a future near you
Last year, General Motors unveiled it’s Electric Networked-Vehicle (EN-V) concept, an electric, autonomous pod-like car.  Though GM denies the rumors that it has set a production date for the EN-V, rest assured, it will eventually make it to market and be directed at urban settings.
What could such a product mean for the future of urban transportation and how will it affect your small business? Click above to read more.

8/9/2011:
U.S. diesel vehicle sales up 38.5% in 2011
Compared to the same period last year, sales of diesel vehicles in the United States were up 38.5 percent through the end of July.  Experts believe that the increase is not only due to more vehicles equipped with diesel engines being sold in the US market, but also because supplier issues have not impacted diesel motor production as the Japanese earthquake have disrupted hybrid part suppliers.  Of the 8,653 diesel vehicles sold in July, the best selling model in the US is currently the VW Jetta TDI.  Even though diesel volume has increased, the total tally represents only 0.82% of the total market.

8/7/2011:
Rising rubber costs leads to spike in used-tire market 
The rising cost of rubber has created an increase in the popularity of used-tire retailers.  With raw material cots climbing, new tire sales have risen high enough to make used tires a viable alternative for consumers.  Industry leaders also believe that the poor economy has made used tires a more attractive purchase for consumers on a budget.  Do you keep used tires handy at your repair shop?  While not every used tire is safe for continued use as they may be patched or worn out, a used tire with a known history and even wear maybe an added value to customers on a budget. 

CLICK HERE TO READ MORE ARTICLES IN OUR “NEWS AROUND THE STATE” ARCHIVE 

MEMBER BENEFIT PARTNER MESSAGE

TMP Energy Solutions
Another Way to Save on Your Energy Bills

We have had a number of NJGCA members successfully reduce their rate per kWh   signing up through our energy saving program. We know it’s difficult to collect 12 months worth of previous electric bills to get an “accurate” analysis when comparing a variable rate to a fixed rate, but we now have another option available. 

This new solution is a power purchase option; the other program is still in full force and has saved members thousands of dollars. If you sign up for the power purchase option, you will be grouped with other NJGCA members until the minimum KW demand is acquired. By pooling the member’s usage together, you will be able to take advantage, as large energy users do, and receive a lower kWh rate.

Each member will receive their own contract. Each member is responsible to sign and return the agreement the day it is received in order to secure the price for their group.

Please do your due diligence, so when you receive the proposal and the agreement you will be able to make an intelligent decision.

If by chance, you still want us to assess you bills, to give you a price to compare, we will require12 months of your most recent utility bills.

There are no bills required, but we would still like to have one bill per meter on file to check account #’s, meter #’s  service addresses and other pertinent information incase there is a problem.

The term of the agreement is for 12 months. During this term period, you will have price protection against any energy price increases along with a low fixed kWh rate.

If you are interested in becoming part of this power purchase option, please contact Phil Apruzzi at the NJGCA.

Remember when you sign up your energy through the NJGCA Energy Program, TMP makes a considerable donation to the NJGCA Scholarship Fund through their proceeds. This has no affect on your rate, and costs you nothing out of pocket.

We hope to help hundreds of NJGCA members reduce their utility costs by participating in this and our other cost reduction programs.  Our purpose, in the endeavor, is to help NJGCA members lower their energy costs while supporting the NJGCA Scholarship Fund. 

Contact Phil Apruzzi at 973-376-0066 or email Phil at phil@njgca.org. Mention that you are interested in saving money on your energy bills. NJGCA & TMP Energy Solutions will handle all the rest.